All Forum Posts by: David K.

Only problem with a HELOC....not so sure that its tax deductible with the new tax laws, might wanna check on that

I like to raise rents lightly every year, that added with small principal pay downs, I REALLY like cash out refi's where I can then buy more property.  Problem now is that rates are much higher than before.  Recently quoted on 5.25% on one, where I'm only paying 3.675....Tough to leave too much idle cash in a property but a real kick in the nuts paying a much higher rate!    What do you all do?

You've def gotta raise it, small raises often add to your cashflow but don't rock the boat.   A big question nobody has failed to mention is the cost of turnover if you raise too much.   If the unit needs nothing then go full boat, if you've got significant repairs then go lighter.  My biggest expense is tenant turns.  You'll lose at least one months rent, plus whatever other costs there are.

I've got property in both MA and RI this one particular is in RI.  In MA though for sprinkler systems to be needed in a 3 unit doesn't there have to be MAJOR renovations for the law to kick in?  I agree with you on changing into a 3 bed unit, probably not worth it.  Without doing that the "lipstick" rehab isn't too bad.

Similar properties are going 185k-250k.  Really differs.

Hey Guys-

Let me know your thoughts.  3 unit with with market rents of $2700, higher if a closet is added to on of the rooms which is now used as a double parlor which already has pocket doors in it.

Units are in average-slightly below average condition.  Mostly cosmetic.  A lot of painted paneling and drop ceilings.  Cabinets need painting and new hardware etc.  Upgrading appliances would help too.

The good news is the hot water tanks are all 5 years old or newer, all separate as are the heating systems which are 10 years old roughly.  The house has plenty of parking and vinyl sided.  Roof isn't in great shape, but has plenty of time left in it.

I'm thinking if I can grab it for 200k, then put 10k into it for appliances and other minor cosmetics I won't do too bad.  REALLY thinking making the units all 3 bed and rent jumps up to 3k.  5 years ago this place would be 130-150k, but someone paid 300k peak 2003.

Big things for me are parking, vinyl siding and windows and separate gas systems, all of which this place has.

Thoughts?

Yep that's what I did.  Cost of turnover would be a year at least break even.  I'd rather have someone keep paying.

After meeting with my attorney the other day he suggested in new rental agreements to do a month to month basis for some very good reasons.  In the state I invest, its much easier to get rid of a problem tenant.  He also mentioned why hold someone in a home they don't want to be in, could be a problem, let em go and move on.  All new rental agreements are done this way now.

I have a good tenant who always pays whose 1 year lease is coming due.  I sent her the new month to month agreement.  She contacted me and asked for another year lease as she feels more comfortable that way.  I explained to her I wasn't planning on raising the rent every month etc., but still insists on a new lease instead.  I included a $25 month increase, (I'm still low for the market, but she's lived here for years).

Wondering if I should agree to do another 1 year, lease but a slightly higher price or just give her what she wants since she's been good for years.  Thoughts?

I have many units of property and tenant turnovers are my biggest cost, so I try and keep vacancy as low as possible.  Please only respond if you have multiple units or property, thanks guys!

I'd look around.  Just got a quote of investment property with 3 units for 5%

Passed on deal deal. Agent said kitchens were all tile, when in fact they were peel and stick tile, LOL.  Kitchens were all jammed in pantry, very odd.  Thanks for the insight.  Always like to bounce things off a few like minded people!